Emini S&P has broken 1972/71 over night to target 1964/63

Daily Forecast - 07 January 2016

S&P March contract

Emini S&P has broken 1972/71 over night to target 1964/63, but is holding just above strong support at 1958/56. This is absolutely crucial for today's trading but longs need stops below 1950. A break below 1950 is another sell signal to target 1943/42 then 1937/36. If we continue lower look for 1931/30. Further losses risks a slide as far as support at 1917/16.

First resistance at 1972 but above here targets minor resistance at 1982/83 before stronger resistance at 1987/88. Shorts need stops above 1992.

Dax March contract

Dax gapped lower through 9960/9950 and mid October lows of 9885 to hit 9855 so far. Why argue with the bears when we see negative breakaway gaps?! Further losses target 9790/85 then minor support at 9760/55. A break below 9725 keeps the pressure on for 9685/80 then 9650/45. That would take us down another 200 or a total of 500 points on the day or 5%.

The high for the day so far is 9987. On a break higher we have an opening gap to fill at as far as 10093. A break above 10115 opens the door to further gains targeting Wednesday's low at 10170/180.

Eurostoxx March contract

EuroStoxx gapped lower on the open at the 3064/60 level for a retest of October lows at 3031/26. So far we have bottomed at 3021. A breakaway gap in a bear trend is certainly not positive so be ready to sell a break below 3020 to target 3009/06 then 2985/83 before September lows at 2070. Just below here meets August mini crash & 2015 lows at 2051.

Today's high as I write is 3060/63. On a break higher we have a gap to fill up to 3096. Above 3100 could then target 3120/25. Unlikely any further but shorts need stops above 3135.

Ftse March contract

FTSE broke 2 week lows at 5948/46 & hit all downside targets as far as important December lows at 5863. As I write we have bottomed exactly here but be ready to sell a break below 5850 to target September lows at 5840 then really very little to stop us heading towards August & 2015 lows at 5761. Obviously this is hugely important.

Above 5993/95 targets first resistance at 5920/23. Shorts need stops above 5935 to target resistance at 5960/65. If we continue higher look for 5990/6000.

E Mini Nasdaq March contract

Emini Nasdaq we wrote this morning: Be ready to sell a break below 4385 to target 4370/65 then 4360. If we continue lower look for 4349/45. Further losses at 4338, 4332 then good support at 4323/17. As I write we are in the 4338/4332 area already. Any brave longs at 4323/17 support need stops below 4307. Be ready to sell a break below to target 4292, 4279/78 & 4268/63.

Betting against the bear trend in this environment is pointless but any rally meets resistance at 4383/88. If we continue higher look for 4400/05 then 4427/32.

Emini Dow Jones March contract

Emini Dow Jones crashes again through 16605/16595 to hit the next downside target of 16480/470. As I write we bottomed exactly here but if we continue lower look for 16380/370, perhaps as far as a test of strong support at 16280/270. This could hold the downside as we become severely oversold but trying longs in this environment is obviously extremely risky. If you do try, use stops below 16235.

Any rally meets resistance at 16595/16605. This has already held a bounce today in fact but if we continue higher look for 16700/720. Further gains may make it as far as 16790/799.